increasing women's access to finance
Bank of Zambia
INCREASING WOMEN’S ACCESS TO FINANCE: CHALLENGES AND OPPORTUNITIES Presentation by Dr Tukiya Kankasa-Mabula, Deputy Governor – Administration, Bank of Zambia 2nd African Women’s Economic Summit, Lagos 12 - 14 July 2012. 1
OUTLINE 1.
Introduction.
2. 3.
Challenges Opportunities
4.
Recommendations
Introduction
In the Bank of Zambia, access to finance is discussed in terms of financial inclusion
Defining Financial Inclusion (FI) The FinScope Zambia 2009 – Top Line Findings defines FI as “Giving people access to appropriate financial products and services, such as savings, transaction banking, credit and insurance, whether formal or informal”.
Why Increase Women’s Access to Finance
Research has established that women’s economic empowerment through entrepreneurship and enterprise development contributes to economic development, gender equality & poverty alleviation.
Statistics on Access
Levels of access low for both men and women
Indications that women are being left behind
2005
14.6%
7.8%
11.3%
66.3%
Increased Total Inclusion
13.9%
2009
0%
9.3%
10%
14.1%
20%
30%
62.7%
40%
50%
60%
70%
80%
90%
Have/use a bank product Dont have/use a bank product but have/use a financial product from a formal non-bank FI Dont have/use a formal financial product but have an informal financial product Dont have/use any financial product
FinScope Zambia 2005-2009 - Increased Financial Inclusion 6
100%
•Statistics on access to finance Further Breakdown on the Comparison of Access to Financial Services Between Urban & Rural Areas in Zambia
7
GENDER
Level of Financial Level of Financial Access By Gender Access by Gender (2005 survey results) (2009 survey results)
MALE
35.6%
40.8%
FEMALE
31.6%
33.9%
KEY NOTE: Marginal increases noted from 2005 to 2009 results with women still largely under-served.
8
Comparison of Access to Financial Services By Gender
9
Challenges
Policy challenges include: Failure to place gender on the mainstream agenda nationally Lack of gender sensitisation of the private sector Need to convince CEOs of FSP of the business case.
Challenges cont.
Challenges faced by women entrepreneurs include: Lack of collateral Financial illiteracy Lack of awareness of development finance Lack of financial confidence Lack of appropriate products Uncertain business climate Inadequate skills Lack of banking facilities
Challenges cont.
Challenges faced by women entrepreneurs include: Cumbersome application procedures & complicated forms to complete High cost of finance Lack of recognition as viable business segment
Bank of Zambia Initiatives To move forward there is need for deliberate and targeted interventions: FSAP FINANCIAL SECTOR DEVELOPMENT PLAN. FINSCOPE SURVEYS. COLLECTION OF GENDER DISAGGREGATED DATA THE NATIONAL STRATEGY ON FINANCIAL EDUCATION RELAXED KYC REQUIREMENTS
Bank of Zambia Initiatives
BOZ STRATEGIC PLAN FAMOS CHECK
FAMOS CHECK INITIATIVE
BOZ in strategic partnership with ILO/ AfDB/ NFNV. Objective of partnership is to improve the financial inclusion of women entrepreneurs and integrate them into financial sectors of the economy. Ultimate goal of the FAMOS Initiative is to contribute to women’s economic empowerment and gender equality that will in turn contribute to sustained economic development
FAMOS CHECK INITIATIVE What FAMOS? Female And Male Operated Small Enterprises.
FAMOS Check Tool enables organisations undertake a self check to determine how well positioned they are to serve FAMOS. FAMOS Tool enables the organisation employ a set of methods to assess its position and thereafter develop intervention measures that will enable it improve on its service to FAMOS.
FAMOS CHECK INITIATIVE
Why FAMOS Check?
Women entrepreneurs play an important role in employment creation, income generation & poverty reduction. Women’s needs not reflected in strategies & services for supporting & developing MSMEs by various organisations including financial institutions (gender blindness). Need for emphasis on involvement and ownership of both women & men enterprises instead of just putting emphasis on size of business.
FAMOS CHECK INITIATIVE Why should organisations and institutions do the self check?
Knowledge on ways of improving work procedures in an organisation. Self checks enable organisations to collect and consolidate ideas from employees, managers and clients. Brings about innovations and improvements within an organisation.
FAMOS CHECK INITIATIVE Task Force Membership Bank of Zambia has established further strategic partnerships through a task force. Membership includes stakeholders who will assist bring awareness and drive the use of the concept. Members include; 1. BOZ as chair 2. Bankers Association of Zambia 3. ILO 4. AfDB 5 Zambia Institute of Banking & Services
FAMOS CHECK INITIATIVE Task Force Membership cont 5. Zambia Institute of Banking and Financial Services 6. Ministry of Gender & Child Development 7. Association of Micro Finance Institutions 8. Zambia Federation Association of Women in Business 9. Women & Law in Southern Africa 10. Chamber of Small & Medium Business Associations
FAMOS CHECK INITIATIVE
To champion the initiative, BOZ has facilitated FAMOS Training of staff from the central bank and commercial banks. 2 of the 3 BOZ staff certified by ILO as trainers. To drive the use of FAMOS Tool in financial service providers, BOZ has spearheaded the formation of a FAMOS Task Force. Objective of Task Force to institutionalise and increase awareness and outreach to all stakeholders.
FAMOS CHECK INITIATIVE
Lessons Learnt Need to train staff at appropriate level. Need for gender sensitisation. Need for a high profile champion Need for emphasis on official data collection by CSO.
CONCLUDING REMARKS THERE IS NEED FOR DELIBERATE AND TARGETED TIME BOUND INTERVENTIONS Need for collection and compilation of empirical data to be used for policy decisions. Need to enact legislation or issue regulations that will obligate institutions to institutionalise gender mainstreaming. Sensitise institutions to conduct gender audits. Financial education to be a national agenda.
THANK YOU
INCREASING WOMEN’S ACCESS TO FINANCE: CHALLENGES AND OPPORTUNITIES Presentation by Dr Tukiya Kankasa-Mabula, Deputy Governor – Administration, Bank of Zambia 2nd African Women’s Economic Summit, Lagos 12 - 14 July 2012. 1
OUTLINE 1.
Introduction.
2. 3.
Challenges Opportunities
4.
Recommendations
Introduction
In the Bank of Zambia, access to finance is discussed in terms of financial inclusion
Defining Financial Inclusion (FI) The FinScope Zambia 2009 – Top Line Findings defines FI as “Giving people access to appropriate financial products and services, such as savings, transaction banking, credit and insurance, whether formal or informal”.
Why Increase Women’s Access to Finance
Research has established that women’s economic empowerment through entrepreneurship and enterprise development contributes to economic development, gender equality & poverty alleviation.
Statistics on Access
Levels of access low for both men and women
Indications that women are being left behind
2005
14.6%
7.8%
11.3%
66.3%
Increased Total Inclusion
13.9%
2009
0%
9.3%
10%
14.1%
20%
30%
62.7%
40%
50%
60%
70%
80%
90%
Have/use a bank product Dont have/use a bank product but have/use a financial product from a formal non-bank FI Dont have/use a formal financial product but have an informal financial product Dont have/use any financial product
FinScope Zambia 2005-2009 - Increased Financial Inclusion 6
100%
•Statistics on access to finance Further Breakdown on the Comparison of Access to Financial Services Between Urban & Rural Areas in Zambia
7
GENDER
Level of Financial Level of Financial Access By Gender Access by Gender (2005 survey results) (2009 survey results)
MALE
35.6%
40.8%
FEMALE
31.6%
33.9%
KEY NOTE: Marginal increases noted from 2005 to 2009 results with women still largely under-served.
8
Comparison of Access to Financial Services By Gender
9
Challenges
Policy challenges include: Failure to place gender on the mainstream agenda nationally Lack of gender sensitisation of the private sector Need to convince CEOs of FSP of the business case.
Challenges cont.
Challenges faced by women entrepreneurs include: Lack of collateral Financial illiteracy Lack of awareness of development finance Lack of financial confidence Lack of appropriate products Uncertain business climate Inadequate skills Lack of banking facilities
Challenges cont.
Challenges faced by women entrepreneurs include: Cumbersome application procedures & complicated forms to complete High cost of finance Lack of recognition as viable business segment
Bank of Zambia Initiatives To move forward there is need for deliberate and targeted interventions: FSAP FINANCIAL SECTOR DEVELOPMENT PLAN. FINSCOPE SURVEYS. COLLECTION OF GENDER DISAGGREGATED DATA THE NATIONAL STRATEGY ON FINANCIAL EDUCATION RELAXED KYC REQUIREMENTS
Bank of Zambia Initiatives
BOZ STRATEGIC PLAN FAMOS CHECK
FAMOS CHECK INITIATIVE
BOZ in strategic partnership with ILO/ AfDB/ NFNV. Objective of partnership is to improve the financial inclusion of women entrepreneurs and integrate them into financial sectors of the economy. Ultimate goal of the FAMOS Initiative is to contribute to women’s economic empowerment and gender equality that will in turn contribute to sustained economic development
FAMOS CHECK INITIATIVE What FAMOS? Female And Male Operated Small Enterprises.
FAMOS Check Tool enables organisations undertake a self check to determine how well positioned they are to serve FAMOS. FAMOS Tool enables the organisation employ a set of methods to assess its position and thereafter develop intervention measures that will enable it improve on its service to FAMOS.
FAMOS CHECK INITIATIVE
Why FAMOS Check?
Women entrepreneurs play an important role in employment creation, income generation & poverty reduction. Women’s needs not reflected in strategies & services for supporting & developing MSMEs by various organisations including financial institutions (gender blindness). Need for emphasis on involvement and ownership of both women & men enterprises instead of just putting emphasis on size of business.
FAMOS CHECK INITIATIVE Why should organisations and institutions do the self check?
Knowledge on ways of improving work procedures in an organisation. Self checks enable organisations to collect and consolidate ideas from employees, managers and clients. Brings about innovations and improvements within an organisation.
FAMOS CHECK INITIATIVE Task Force Membership Bank of Zambia has established further strategic partnerships through a task force. Membership includes stakeholders who will assist bring awareness and drive the use of the concept. Members include; 1. BOZ as chair 2. Bankers Association of Zambia 3. ILO 4. AfDB 5 Zambia Institute of Banking & Services
FAMOS CHECK INITIATIVE Task Force Membership cont 5. Zambia Institute of Banking and Financial Services 6. Ministry of Gender & Child Development 7. Association of Micro Finance Institutions 8. Zambia Federation Association of Women in Business 9. Women & Law in Southern Africa 10. Chamber of Small & Medium Business Associations
FAMOS CHECK INITIATIVE
To champion the initiative, BOZ has facilitated FAMOS Training of staff from the central bank and commercial banks. 2 of the 3 BOZ staff certified by ILO as trainers. To drive the use of FAMOS Tool in financial service providers, BOZ has spearheaded the formation of a FAMOS Task Force. Objective of Task Force to institutionalise and increase awareness and outreach to all stakeholders.
FAMOS CHECK INITIATIVE
Lessons Learnt Need to train staff at appropriate level. Need for gender sensitisation. Need for a high profile champion Need for emphasis on official data collection by CSO.
CONCLUDING REMARKS THERE IS NEED FOR DELIBERATE AND TARGETED TIME BOUND INTERVENTIONS Need for collection and compilation of empirical data to be used for policy decisions. Need to enact legislation or issue regulations that will obligate institutions to institutionalise gender mainstreaming. Sensitise institutions to conduct gender audits. Financial education to be a national agenda.
THANK YOU
